Labor support dives amid interest rate fears

Support for Anthony Albanese’s government has continued to plunge, according to a new poll that reveals one-in-two voters expect the RBA will hike the cash rate next week.

About half of voters believe the Reserve Bank will hike again next week.

Support for Anthony Albanese’s government has continued to plunge, according to a new poll that reveals that one in two voters expect the Reserve Bank board will hike the cash rate next week.

The SECNewgate Research Mood of the Nation survey, conducted between August 16 and 21, shows falling support for federal and state governments amid cost-of-living pressures and concern over the housing crisis.

The poll of more than 1200 voters reveals only 26 per cent of Australians expect the cash rate to be lower in 12 months, with most households bracing for up to three years of mortgage pain. After 12 rate hikes in just over a year, 49 per cent of voters fear the RBA on Tuesday will push the cash rate above 4.1 per cent.

A combination of interest rate hikes and cost-of-living pressures has seen governments across the country take a hit, with only 36 per cent of voters positively rating the performance of the ­Albanese government, down from 46 per cent in April.

Performance rankings of state governments in Victoria, NSW and Queensland were down 7 to 8 per cent.

With mortgage holders across the country dedicating a record share of their take-home pay to loan repayments, the corporate cop has written to the chief executives of 30 lenders reminding them of their obligations to help the increasing number of “everyday Australians” struggling to make ends meet.

Australian Securities & Investments Commission chief Danielle Press, in a letter seen by The Australian and dated August 30, said the regulator was “aware of increasing evidence suggesting that some consumer cohorts are experiencing financial distress and hardship”.

“It is in this context that it is critically important that you prioritise ensuring that your ­organisation has appropriate ­arrangements to respond to and support consumers experiencing financial hardship,” she writes.

“ASIC reminds lenders that they must have the right arrangements in place to respond to ­requests for assistance from customers experiencing financial hardship and to work constructively with them to find a sustainable solution.”

SECNewgate Research partner David Stolper said there was also a growing dissatisfaction with corporate Australia as companies unveil record profits. Some 46 per cent believe companies are not “behaving ethically and doing the right thing”, up sharply from 39 per cent in April.

“Our latest research shows Australians are feeling some cost-of-living relief from the pause in rising interest rates, but they have been angered by the record profits that corporate Australia has been releasing in the last few weeks,” Mr Stolper said.

“While our poll found there was a little less pessimism about the economy than two months ago, almost half of all Australians expect interest rates to rise at the RBA’s next meeting on September 5. Only 26 per cent expect interest rates to be lower in one year, but 47 per cent think they will be lower in three years.

“Governments across Australia are under increasing pressure, suggesting people don’t believe their elected representatives are responding strongly enough to the cost-of-living crisis.”

While the crisis remains the top priority for voters, the poll suggests concerns may have peaked. “It remains the top ­national issue, although unprompted mentions of it have ­fallen for the first time in our study (63 per cent down from 69 per cent in June). Lower concern with grocery prices (down 6 per cent to 84 per cent), easing inflation and paused official interest rates are likely behind the trend,” the survey says. “National mood and economic outlook is slightly improved: 57 per cent still feel Australia is heading in the wrong direction, but this is down from 61 per cent in June. Predictions for the economy are also less negative, with 44 per cent feeling it will deteriorate in a year, down from 55 per cent.”

Mr Stolper said the poll found that only 42 per cent of voters supported the gas ban in Victoria, with 40 per cent supporting similar bans nationally. “That suggests that Australians still largely support gas applications in their home,” he said.

“We also looked at an issue that could potentially unlock the electricity transmission rollout in Australia, which is vital to the transition to renewable energy.

“We found 44 per cent support compulsory acquisitions of private properties along the route of transmission lines and towers in rural and regional areas.”